• Eastern Cape Rising Sun

ECDC owed R142mil in rent for properties

The Eastern Cape Development Corporation (ECDC) has begun an eviction process of 45 residential and industrial property tenants through an order of the court in Butterworth. These owe the ECDC a combined R40 million in arrear rentals. The corporation is owed a total of R150 million by tenants, with R142 million made up of 173 debtors who have refused to settle their rental or ignored pleas to pay their outstanding bills.


The group of 45 was handed over to ECDC attorneys and already four tenants have been evicted for outstanding rent for more than three months. Some clients are sub-letting ECDC properties and collecting rentals while not paying their dues to the Corporation. The vast majority of these tenants are said to be economically active and can afford ECDC rentals.


ECDC has a property portfolio of 212 flat units, 99 standalone houses and 175 industrial properties in Butterworth. “The continued non-payment of rentals is a significant cash drag on the institution. The Public Finance Management Act (PFMA) requires ECDC to exhaust all available avenues in the collection of money’s owed to a state-owned enterprise.


The non-payment of rental on ECDC properties impedes ECDC’s ability to deliver on its development mandate. The government requires ECDC to be financially sound and to do more with less in a challenging fiscal environment,” said ECDC Chief Executive Officer, Ndzondelelo Dlulane.


Dlulane added that in order for ECDC to survive, measures are being put in place to recover the debt due to the Corporation.

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